Empowering Coffee Farmers: NACCU CEO Dr. Festus Bett Discusses DSS Impact and Sector Reforms on KASS TV

In a recent interview on KASS TV, Dr. Festus Bett, CEO of the National Coffee Cooperative Union (NACCU), discussed the current state of coffee farmers in Kenya, focusing on the Direct Settlement System (DSS) and its impact on coffee cooperatives.

The DSS, introduced to streamline payments to coffee farmers, ensures that proceeds from coffee sales are remitted directly to farmers’ accounts. This system aims to enhance transparency and reduce delays in payments, thereby empowering farmers economically. However, its implementation has faced challenges, including delays in settlements and concerns over licensing practices within the coffee sector.

Dr. Bett highlighted that while the DSS has the potential to benefit farmers, issues such as the licensing of commercial millers affiliated with buyers contravene existing regulations. He cited instances where county governments have issued permits to entities linked to buyers, undermining the integrity of the DSS. For example, in Kiambu County, licenses were granted to Sasini Plc Millers and Kofinaf Company Limited, both associated with licensed buyers, which violates the Crops (Coffee) (General) Regulations 2019.

NACCU has called for government intervention to address these licensing anomalies and ensure that the DSS operates as intended. The union seeks the suspension of coffee buying licenses and activities of the implicated entities pending an inquiry into the licensing process. Despite these challenges, there have been positive developments in the sector. Kipkelion District Cooperative Union (KDCU), a member of NACCU, successfully executed a direct sale of 134.4 metric tons of coffee to South Korea, valued at USD 908,160. This milestone demonstrates the potential for cooperatives to engage directly with international buyers, thereby securing better prices for their produce. Such direct sales empower farmers by reducing reliance on traditional auction systems and eliminating intermediaries who have historically controlled prices.

Dr. Festus Bett emphasized the need for continued reforms in the coffee sector to protect farmers’ interests. He called for strict enforcement of regulations to prevent conflicts of interest and ensure that licensing processes are transparent and fair. Additionally, he advocated for capacity building among coffee cooperatives to enable them to engage directly with international markets, thus enhancing their bargaining power and profitability.

In conclusion, while the DSS presents an opportunity to improve the livelihoods of coffee farmers in Kenya, its success depends on addressing existing challenges and ensuring that all stakeholders adhere to established regulations.

NACCU remains committed to advocating for the rights of coffee farmers and supporting initiatives that promote transparency, fairness, and economic empowerment within the sector.